NIIs Drive Strong First Day for Indegene IPO

7 May 2024 , 09:02 AM

On the first day of the bidding process on Monday, Indegene Ltd.’s initial public offer (IPO) went smoothly thanks to a lot of interest from non-institutional investors (NII). At the end of Day 1, the issue had 1.67 times subscribers overall.

The retail section received 1.5 times as many bids as the amount earmarked for them whereas the NIIs portion was booked over 4.13 times. With only 5% of bids received so far, the QIB section was off to a slow start.

The company raised around ₹549 Crore from anchor investors prior to the issue launch.

Capital Group, Fidelity Investments, Loomis Sayles and Company, Jupiter Asset Management, Abu Dhabi Investment Authority, SBI Mutual Fund, and ICICI Prudential Mutual Fund are a few of the well-known investors that took part in the anchor round.

The IPO consists of an offer for sale (OFS) of up to 2.93 Crore equity shares by current investors, along with a new equity issue of up to ₹750 Crore.

A number of people would sell shares under the OFS, including Manish Gupta, Rajesh Bhaskaran Nair, Anita Nair, Carlyle, Brighton Park Capital, and Nadathur Family Office.

The money obtained by the new offer would go towards financing inorganic expansion, debt repayment, capital expenditure requirements, deferred consideration payments for previous acquisitions, and general business needs.

Indigene has set a pricing range for its initial public offering of ₹430–452. The company’s goal is to raise ₹1,842 Crore from the offering at the upper end of the price band.

Indegene was established in 1998 and provides solutions to assist biopharmaceutical, emerging biotech, and medical device firms in the development, introduction, and marketing of their products as well as in maximising sales for the duration of their life cycles.

The company offers solutions that help life science companies with clinical trials, support their regulatory and safety operations, help with product launches, and drive sales and marketing throughout the life cycle of their products. It does this by combining its more than two decades of experience in the healthcare domain with its technology platforms.

The company reported operating revenue of ₹1,969 Crore and profit after tax of ₹241 Crore for the period ending in December 2023.

The book running lead managers for the issue are Kotak Mahindra Capital, Citigroup Global Markets India, J P Morgan India, Nomura Financial Advisory, and Securities (India).

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